For a calendar plan year, suppose an employee's last day at work is Dec 24th yet gets paid through Dec 31st because he had several vacation days he hadn't used. So he physically did not go to work after Dec 24th, yet received a paycheck in the mail in Jan for days through Dec 31st. He chose to use his remaining vacation days during the last week of Dec rather than go to work. The plan has a last day requirement to receive a match. Does he get the match?

Scenario:

The payroll system maintains home addresses for employees. The payroll system indicates the state in which the employee lives has a state income tax. At retirement, the employee provides a W-4p (withholding info for pension payments) indicating a home address in a state with no state income tax. As a result, the retirement distribution has no state tax withheld.

Does the employer have any liability if the retirement payment is based on the W-4p home address, even tho the home address in the payroll system shows a different address ?

Anyone else run into this problem ?

I'm sure you've all gotten a smart alecky post from Tom Poje at some point in your Benefitslink travels. He's a year older today so we're sharing our birthday wishes with all of his friends on Benefitslink.

Plan allows for directed investments for participants no matter what the vested percentage. Plan to be amended to provide that 100% vesting required in order to direct investments. Any protected benefit issues? If allowing directed investments is not a protected benefit, then it would appear that the conditions for being able to so direct would also not be protected. Thanks.

Seller and Buyer are enterining into an asset deal (substantially all of the assets). Both have 401(k) plans w/ various payment options. The agreement provides that Buyer is not assuming Company A's 401(k) plan, but Buyer will ensure that its plan will accept direct rollovers of accounts from Seller's 401(k) plan with regard to employee that transfer from Seller to Buyer (they will not be in the same controlled group after the transaction).

Sooooooooo,

1. given the changes to the same desk rule (now distributions are allowed from separation of service - and assuming the seller's plan has been modified for this)

2. Given the changes to the protected benefit rules and the direct rollover rules,

3. If Seller gives the employees the option of taking a lump sum or taking a direct rollover to Buyer's plan, an IRA or another retirement plan (so this is a voluntary direct rollover),

is it safe to assume that the protected benefit rules would not apply to the amounts directly rolled over from Seller's plan to Buyer's plan?

I know if there was no transaction taking place - then it would be deemed a direct rollover and no PBs - but I wasn't sure if the fact that there is a transaction taking place would change all of that? Any thoughts would be appreciated!

I have a traditional IRA (from a company roll-over), can I open a Roth IRA as well?

If so can I make contributions to both? If not what are the limits?

Thanks

Am I missing something here. We just bought a company (Company A) and assumed that company's 401(k) plan.

I have been going through the plan document and amendments (to acquaint myself, etc.) and noticed that five years ago, Company A bought Company B in December. Company A then amended Company's A Plan (the one we just assumed) - but the resolution and the amendment are signed the NEXT August.

The amendment basically incorporates the provisions of the asset purchase agreement (recognizing eligigiblity and vesting service for the acquired employees, etc.).

My question - this appears to be a retroactive amendment. Shouldn't this resolution and amendment have been done prior to the closing date of the sale - or is there some extended amendment period?

I'm mainly concerned because we assumed the plan - which means we take on the plan's past liabilities, etc. Should I be concerned?

Employee with FSA no longer living with spouse - has filed for divorce, however, with court dates and whatnot, probably will not be finaled until about march or april of 2006. If letter from the lawyer stating that divorce has been filed can that be considered change in status?

Employee is having financial difficulty. Employer is willing to terminate the employee so that he can receive a full distribution from his 401(k) and then rehire.

What are the risks?

Plan document says forfeitures are used to reduce company contributions. However, that is not workable in a leveraged ESOP with almost no cash available to buy the forfeited shares from the participants. We are thinking of reallocating, however there is no authority for that in the document. The other option is to amend, but there might be some retroactive amendment issues. I would appreciate any suggestions.

Searched for an answer on this but the responses didn't necessarily related to my situation.

New employee eligible to enter plan on 8/1. EE completes salary reduction form and is enrolled in the plan. Due to mixup by payroll dept. in notifying payroll processing company about new deduction this employee did not have 401k deducted for 2 August payrolls. Going forward they are setup correctly.

Since this was due to an administrative oversight (mis-communication) we are allowing the ee to 'make-up' the missed deductions. Is a suitable correction method just to allow the employee to double up the missed deductions and have that withheld from the upcoming paycheck?

Does anyone know of a company specializing in assistance to employers/sponsors with qualified retirement plan distributions? I'm not looking for a TPA, I was thinking of a company that would be more specialized.

A new client to me, has a 403b plan and 401k plan. I haven't yet received the actual plan document for the 4k and I presume the 403b is salary reduction only based on their tax exempt status. My questions are what is the benefit to offer the two plans and are there any circumstances where these two plans are combined for testing purposes and/or contribution limits, other than 402g?

I have a client with an on-site health center that provides emergency care and treatment of minor illnesses and injuries. Can this client offer an HSA to its employees?

Does anyone know if the new 403(b) regs will affect 501©(3)'s in the same way? Thanks!

May a charity be named as the beneficiary of a qualified plan? Does it make any difference if it is a charitable trust?

I have been reviewing the NAIC model law for quite sometime trying to determine the length of time a signature is valid. For instance, with a 403(b) transfer an application and transfer paperwork is signed on 1-1-05 at what point can you not accept those funds? Does this differ based on product? I know 403(b) life plans no longer exist, but if they did how far out could the effective date be from the signature date?

If anyone has the website with these guidelines I would greatly appreciate it if you pasted the link.

When you have a control group do you test each plan separately for the ADP/ACP or are they aggregated?

I seem to recall that there were limits as to the amounrt of benefits that could be reimbursed under a Medical Expense Reimbursement Account. I recall that these amounts were either $50,000 or 15% of compensation. Additionally, where in the Code are these amounts set out? Any assistence would be appreciated. Thanks. Ed

An employer uses a VEBA as a funding vehicle for its health plan. The employer wants to keep the health plan in place but terminate the VEBA. Other than following the termination procedures in the VEBA trust document, using the remaining assets to pay health benefits and filing a final 5500, is there anything else that should be done?